Just days after the US Government announced US$162 million ($226.9 million) in critical minerals funding, the Department of Energy’s (DOE) Office of Critical Mineral and Energy Innovation (CMEI) has announced an additional US$500 million for seven projects across critical minerals processing, battery manufacturing, and recycling.
This funding falls under US President Trump’s Executive Order, Unleashing American Energy, with the aim of advancing the US’s domestic critical minerals supply chains.
US Secretary of Energy Chris Wright says the funding comes with the recognition that the country has been dependent on foreign sources of metals and minerals for too long.
“President Trump is reversing that dependence by securing our critical supply chains, unleashing American industry, and bringing critical materials production and processing back to the United States,” Wright says.
Assistant Secretary of Energy Audrey Robertson also notes that the US is taking decisive action on critical minerals.
“These projects underscore DOE’s commitment to driving innovation, reducing reliance on foreign sources, and promoting American energy dominance,” Robertson says.
This announcement marks the third round of funding from the DOE’s Battery Materials Processing and Battery Manufacturing and Recycling programs.
Waterleaf P1 HoldCo, part of Lilac Solutions, has been granted US$100 million to build and operate a commercial lithium extraction and refining facility. The facility aims to double the current capacity for US lithium production as well as lay the groundwork for future expansion.
Formation Holdings, a subsidiary of Jervois Global, has received US$100 million to build a commercial cobalt refinery which will produce battery-grade cobalt sulphate and related materials.
Nth Cycle has been granted US$100 million for a facility that will refine black mass from end-of-life lithium-ion batteries and manufacturing scrap into ‘high-purity’ metals and battery-grade materials.
Princeton NuEnergy, Arcanum Ventures, Elevated Materials, and Coreshell Technologies have each received US$50 million for additional battery materials processing and battery manufacturing facilities.
This round of funding helps strengthen the US’s growth across the battery metals value chain. With the mid- and downstream industries long dominated by China, the US has spent the past few years focusing on onshoring manufacturing and processing to help ensure the supply of key critical minerals needed for the energy transition, energy security, national security and defence, and advanced technologies.
Explorers define future supply
While significant funding is currently going into the mid- and downstream, greater attention is still needed upstream, where the metals and minerals originate.
Exploration companies are responsible for discovering and defining tomorrow’s supply of critical minerals. Government programs across North America are helping to fund exploration in small ways, but the majority of financing still comes from private equity and debt.
Power Metallic Mines (TSX-V:PNPN) announced a private placement of C$28.2 million ($28.7 million) in early June, including a consideration of C$2 million from mining investor Eric Sprott. The company is advancing both its flagship Nisk Project in Québec, Canada, and the Jabal Baudan exploration licence in Saudi Arabia.
The company has five rigs working across the Nisk and Lion discoveries in Québec, with assays expected from September 2026.
The Nisk Project is a ‘high-grade’ nickel-copper sulphide deposit with mineralisation containing several metals, including nickel, copper, cobalt, palladium, and platinum. While Québec is known to have generous exploration tax credits, private placement financing is what really moves the needle in advancing these projects. Support from major investors such as Eric Sprott also helps build confidence in the project’s progress.
St-Georges Eco-Mining (CSE:SX) is approaching the battery metals and critical minerals value chain from a number of angles, with exploration projects in both Québec and Iceland. The company also operates an urban mining platform focused on battery metals recycling, green hydrogen technologies, and metallurgical research and development for mining.
This diversified activity positions St-Georges Eco-Mining across multiple stages of the critical minerals value chain, from early-stage exploration to recycling and processing technologies. It also opens the company to a broad range of financing and partnership opportunities.
Lake Winn Resources (TSX-V:LWR) is advancing the Little Nahanni Pegmatite Group (LNPG) Project, which provides exposure to lithium, tantalum, and tin in the Northwest Territories, Canada. The company recently announced a strategic refocus on critical minerals, with exploration and drilling plans for the LNPG Project, as well as a proposed acquisition of the Silver Switchback Copper-Silver Project in British Columbia.
Lake Winn’s pivot to critical minerals underscores how upstream players are positioning themselves to feed the North American supply chains currently receiving increased government funding. The company’s dual track of strategic refocus and acquisition highlights how junior explorers can help ensure that financing flowing into the midstream is supported by the raw materials those operations require.
Likewise, Fathom Nickel (CSE:FNI) is focused on securing North America’s critical minerals supply through its flagship Gochager Lake Nickel-Copper-Cobalt Project in Saskatchewan.
The DOE’s latest round of funding underscores Washington’s determination to secure the mid- and downstream of the battery metals supply chain. Yet, as junior explorers are consistently demonstrating, the upstream remains a critical foundation.
Without new discoveries and defined deposits, the billions flowing into processing and recycling risk running ahead of raw material supply.
Exploration juniors, backed predominantly by private capital and strategic investors, are positioning themselves to ensure North America’s critical minerals ambitions are matched by the feedstock needed to sustain them.
Write to Amy Rotman at Mining.com.au
Images: US Department of Energy, Power Metallic Mines
